[Federal Register Volume 72, Number 76 (Friday, April 20, 2007)]
[Notices]
[Pages 19880-19881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7597]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-201-805


Certain Circular Welded Non-Alloy Steel Pipe and Tube from 
Mexico: Notice of Preliminary Intent to Rescind Antidumping Duty New 
Shipper Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: In response to a request from Conduit S.A. de C.V. (Conduit), 
a Mexican producer of certain circular welded non-alloy steel pipe and 
tube (pipe and tube), the Department of Commerce (the Department) 
initiated a new shipper review of the antidumping duty order on pipe 
and tube from Mexico. The period of review covers November 1, 2005, 
through April 30, 2006. Based on our findings at verification, the 
Department preliminarily determines that the merchandise Conduit sold 
and entered into the United States was not subject merchandise. Because 
the respondent has consequently made no sales or shipments of the 
subject merchandise to the United States during the period of review, 
we preliminarily intend to rescind this new shipper review.

EFFECTIVE DATE: April 20, 2007.

FOR FURTHER INFORMATION CONTACT: John Drury or Patrick Edwards, AD/CVD 
Operations, Office 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
0195 or (202) 482-8029, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published an antidumping duty order on pipe and tube 
from Mexico on November 2, 1992. See Notice of Antidumping Duty Order: 
Circular Welded Non-Alloy Steel Pipe from Mexico, 57 FR 49453 (November 
2, 1992). On May 26, 2006, the Department received a timely request 
from Conduit, in accordance with 19 CFR Sec.  351.214(c), to initiate a 
new shipper review of the antidumping duty order on pipe and tube from 
Mexico. Pursuant to 19 CFR Sec.  351.214(b), Conduit certified that it 
is both the exporter and producer of the subject merchandise, that it 
did not export subject merchandise to the United States during the 
period of the investigation, and that since the investigation was 
initiated, it has never been affiliated with any exporter or producer 
who exported the subject merchandise to the United States. Conduit also 
submitted documentation establishing the date on which the shipment 
that was the basis for this new shipper review was first entered for 
consumption, the volume shipped, and the date of its first sale to an 
unaffiliated customer in the United States.
    The Department published the initiation of the new shipper review 
of the antidumping duty order on pipe and tube from Mexico on July 10, 
2006. See Circular Welded Non-Alloy Steel Pipe and Tube from Mexico: 
Initiation of New Shipper Antidumping Duty Review, 71 FR 38851 (July 
10, 2006).

Scope of the Order

    The merchandise under review is circular welded non-alloy steel 
pipes and tubes, of circular cross-section, not more than 406.4 
millimeters (16 inches) in outside diameter, regardless of wall 
thickness, surface finish (black, galvanized, or painted), or end 
finish (plain end, beveled end, threaded, or threaded and coupled). 
These pipes and tubes are generally known as standard pipes and tubes 
and are intended for the low-pressure conveyance of water, steam, 
natural gas, and other liquids and gases in plumbing and heating 
systems, air conditioning units, automatic sprinkler systems, and other 
related uses, and generally meet ASTM A-53 specifications. Standard 
pipe may also be used for light load-bearing applications, such as for 
fence tubing, and as structural pipe tubing used for framing and 
support members for reconstruction or load-bearing purposes in the 
construction, shipbuilding, trucking, farm equipment, and related

[[Page 19881]]

industries. Unfinished conduit pipe is also included in these orders. 
All carbon steel pipes and tubes within the physical description 
outlined above are included within the scope of these orders, except 
line pipe, oil country tubular goods, boiler tubing, mechanical tubing, 
pipe and tube hollows for redraws, finished scaffolding, and finished 
conduit. Standard pipe that is dual or triple certified/stenciled that 
enters the U.S. as line pipe of a kind used for oil or gas pipelines is 
also not included in these orders.
    Imports of the products covered by these orders are currently 
classifiable under the following Harmonized Tariff Schedule (HTS) 
subheadings: 7306.30.10.00, 7306.30.50.25, 7306.30.50.32, 
7306.30.50.40, 7306.30.50.55, 7306.30.50.85, and 7306.30.50.90.
    Although the HTS subheadings are provided for convenience and 
customs purposes, our written description of the scope of these 
proceedings is dispositive.

Preliminary Intent to Rescind New Shipper Review

    The Department may rescind a new shipper review with respect to an 
exporter or producer if the Department concludes that there were no 
entries, exports, or sales of the subject merchandise to the United 
States during the period of review. See 19 CFR Sec.  351.214(f)(2). In 
response to the Department's questionnaire, Conduit provided full and 
complete responses attesting to their qualification as a new shipper 
under the Department's regulations, and established that a completed 
transaction (a sale and entry) of subject merchandise pipe and tube was 
sold to an unaffiliated customer in the United States.
    The Department conducted its verification of Conduit's responses in 
Mexico City from February 28, 2007, through March 2, 2007. The purpose 
of the Department's verification was to verify Conduit's one reported 
sale; however, during the verification, Conduit presented additional 
documentation of an unreported sale. Further examination of Conduit's 
quality certificates, production run data and additional sales 
documentation not presented to the Department during the questionnaire 
response period confirmed that the merchandise sold in the unreported 
sale was identical to the merchandise sold in the reported sale that is 
subject to this new shipper review. See Memorandum to the File from 
John Drury and Patrick Edwards, Analysts, through Angelica Mendoza, 
Program Manager regarding Verification of Sales Response of Conduit 
S.A. de C.V. in the Antidumping New Shipper Review of Certain Circular 
Welded Non-Alloy Steel Pipe and Tube from Mexico, dated March 23, 2007, 
on file in the Central Records Unit, room B-099 of the main Commerce 
building.
    Additionally, the documentation examined by the Department 
concerning the unreported sale, which was made in November 2005, 
indicated that the merchandise was of a type of tubing made to the 
American Society for Testing and Materials (ASTM) standard of A-513, 
which is a mechanical tubing specification. The Department examined 
production documentation and quality certificates for the sale, 
confirming that, given its chemical composition and wall thickness, the 
pipe was indeed in conformance with the ASTM A-513 standard and not the 
product subject to this Order.
    Previous rulings on the scope of the Order prescribe that pipe 
produced to the A-513 standard, or generally ``mechanical tubing,'' is 
specifically excluded from the scope of the antidumping duty order on 
pipe and tube from Mexico. See section on ``Scope of the Order'' above. 
See also, Third Determination on Remand, In the matter of: Final Scope 
Ruling - Antidumping Duty Order on Circular Welded Non-Alloy Steel Pipe 
from Mexico, Secretariat File No. USA-MEX--1998-1904-05 (February 19, 
2004) (NAFTA Scope Decision). In its submission to the panel, during 
the NAFTA Scope Decision proceeding, the Department explained that, `` 
while mechanical tubing can comply with basic description of the pipe 
subject to this order, its removal from the order is based on its 
recognition by purchasers and producers as a specialized, made-to-order 
product. This denotes a product possessing unique chemical, physical, 
and mechanical characteristics, most notably the physical 
characteristics. It is a custom made, unique size product that is made 
to order, thereby differentiating it from the 'standard sizes' of pipe 
and fence tubing covered by the order. Non-standard pipe sizes 
generally would be considered to be outside the scope of the order the 
Department reiterates that mechanical tubing is outside of the scope of 
the Order.'' The Panel affirmed this finding by the Department on June 
7, 2004.
    Therefore, since this product possesses unique physical 
characteristics that do not comply with the products subject to this 
order, and based on the NAFTA Scope Decision, the Department 
preliminarily determines that there is no sale or entry of subject 
merchandise to examine, as prescribed under 19 CFR Sec.  351.214(f)(2) 
of the Department's regulations. Accordingly, the Department 
preliminarily intends to rescind this new shipper review.

Public Comment

    Interested parties may submit case briefs no later than 15 days 
after the date of publication of this notice of intent to rescind. See 
19 CFR Sec.  351.309(c)(ii). Rebuttal briefs, limited to issues raised 
in case briefs, may be filed no later than five days after the time 
limit for filing the case briefs. See 19 CFR Sec.  351.309(d). Parties 
who submit arguments are requested to submit with the argument (1) a 
statement of the issue, (2) a brief summary of the argument, and (3) a 
table of authorities. Further, parties submitting written comments 
should provide the Department with an additional copy of the public 
version of any such comments on diskette. An interested party may 
request a hearing within 15 days of publication of this notice of 
intent to rescind. See 19 CFR Sec.  351.310(c). Any hearing, if 
requested, will be held two days after the scheduled date for 
submission rebuttal briefs, or the first working day thereafter. See 19 
CFR Sec.  351.310(d)(1). The Department will issue the final notice, 
which will include the results of its analysis of issues raised in any 
such comments, or at a hearing, if requested, within 120 days of 
publication of this notice of intent to rescind.
    This notice is issued and published in accordance with sections 
751(a)(2) and 777(i)(1) of the Tariff Act of 1930, as amended.

    Dated: April 13, 2007.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E7-7597 Filed 4-19-07; 8:45 am]
BILLING CODE 3510-DS-S